- i7; . Hi; ri. . fee.. V:Vv V' PS'H ADVERTISING DOBS IT. Don't spend your time In tke expense end of your buetneM, but ln the profit end, the selling end, the creative end,, that makes the money to keep the o-'h-er end s;olngr. rr j THE "S -- - -H " vol. xcrvsro. ti4. : iiN AIID RUSSIAN EMPERORS SEE GREAT BSnLE III FAR EAST William of Germany and Nich olas of Russia Face to Face on the Battle Front. DESPERATE FIGHTING Neither Side Gives Out Any Statement as to Outcome of Terrific Battle Known to be Raging With Un abated Fury. Loudou. Feb. 7. "With the Cerman and Russian Emperors as eyewitnesses, the armies of Russia and Germany are still contending "f0r the positions that protect the Polish capital of Warsaw from the invaders. The Russian Em "peror has been at Russian head quarters for several days, and the German representative announces that the German Emperor has joined his generals and has actu ally visited troops in the' trenches. Nothing has been disclosed as to the progress of the battle which when last reports were received was raging with unabated fury. The Russians, according to Sat urdays official statement, had strengthened their positions on the western -bank- 6FtheSzura, which they had crossed near its mouth, aud captured another German vantage poiut. They also captur ed a long line of German trenches near Borjimow, which has been the center of most desperate fighting. U.-ittlc iu East Prussia. In East Prussia another big battle Is developing the Germans having sent reinforcements, apparently from their Bzura front to that region. In the Carpathians, while their right is ad vancing: the Russians are able only to import that their left has checked the Aimro-ijorinan offensive. "With regard to all this fighting tie German official report says: "Xo essential events have taken piace." , fighting in the West is u repetition the preceding days. There have be?n lively artillery duels and a few infantry attacks in which both eides daijn to have gained some ground. No .further fighting in Egypt is re portod. The Turkish account of that which already has occurred there re fcs to it as an encounter of van- sruards and adds that the battles are ?ti!l in progress. This probably is a fiejaye! announcement. The Italian report of the return of Karon Burian. the Austro-Hungarian foreign minister from his visit to the "'"fraan Emperor says the Austrian ahinet found the results satisfactory were not inclined to give Trentino u Italy, and part of Transylvania to Itoumimia a.s the price of continued neutrality on the part of those coun tries. Turkey h:;s given Italy satisfaction for the ITodeida incident. The British onsi i hus veen realeased and the Ital an fla- saluted. '''iisiish refugees from Constantino P'e declare the former Gernian cruiser ';0(sbe:.. now owned by Turkey, was so ''staged by striking a Turkish mine, ":t,iat it - ii e impossible to repair her at Constantinople. This virtual loss of "ik ii-n reauces me x uritian ueci to a statement of inferiority as Pared- with the Russian Black sei nirh i.a ;.bout to be strengthene com- sea fleet rev . . j. - on li n t coiiHiruuicu "astonoi. Tt i believed that when this S"P joins the fleet Russia will at 'ack Hosphorus and the. Black sea while the Allied fleets attempt 'o forr-p the Dardanelles. "ijte Bfnrdict's prayer for peace was p"'1 in all the Catholic churches in f neiar.fi and France today. T I' II KEY SATISFIED ITAL.Y. r,'! nnnlt Returned to Consulate Italian Flag Saluted. lari.sh, Feb. ,7. Friction between iy aiHi Turkey over the seizure by r,II"Us of George Alexander Richard- ". brttish consul at Hodeida, Arabia, " ii Mr f' was a refugee in the Italian 'te. inrnh.Thlv was nrlrl tnrtav. nJ"f-'ilat ''rriint- to a Havas dispatch from 'hardson was brought before the :,n consulate in Hodeida, says the ine Italian nag was nymg over -!e building'" and the Turks ren- " honors. Mr. Richardson, then on he auxiliary cruiser Empress of nil-. f-on-espondent adds that rela ; '"s l etween the Italian consulate and l K,al authoriti "ities of Hodeida again -ordiaj. On ' attacked the British consulate ( "o! iC3a and Consul Richardson fled 1 'lalian consulate. A demand was v 'Continued on Page Two.) BAD CONGESTION AT TS New York, Baltimore and Nor 'folk Report to McAdoo. SHORTAGE OF VESSELS Collector Hamilton at Norfolk States That Warehouses, Sheds and Cars Are Fall of Both Forelg-n and Coastwise Goods. Washington, Feb. 7. Secretary Mc Adoo tonight made public telegrams from the New 'York, Baltimore, and Norfolk customs 'collectors telling of great congestion of freight because of hick of ocean-going transportation. Dudley Field Mai one, the New York collector, told of unusual congestion particularly with respect to grain. "Explanation of this congestion," he reported, "is that export movement cannot be effected because of shortage of tonange." The congestion applied to warehouse elevators as well as cars and lighters, he added, but no marked congestion of coastwise trade was discernable. Collector Ryan at Baltimore reportT ed that the Pennsylvania railroad had placed an embargo on grain consigned for export there. The elevators, he said, "were loaded to capacity and there were 4,260,000 bushels of grain on railroad tracks awaiting removal. Otherwise conditions at Baltimore were normal, Mr. Ryan said. - Bad Conditions at Norfolk. Collector Hamilton at Norfolk re- I puneu iiiucii congestion 01 mercnan i dise consigned to both coastwise and ! foreign destinations. "There are in warehouse and under shed at Norfolk at the present time, he reported, 85,556 bales of cotton val ued in Germany at $5,476,160. There Is great congestion in warehouses, . under shed and on cars of general export merchandise freight, consisting princi pally of tobacco, lumber, flour, cot ton seed' oil, etc. 7The congestion has become so great that in some instances foreign lines ftfcnrgte"tinif 'out 'move' general Tg ships within an immediate week for Glasgow,; Liverpool and London than for any combined period of three months, have been compelled to refuse : offered shipments, j "There is a great and serious inter ruption to export coal business by rea ! son of the fact that ships are not I available. This .being especially J true in the case of export coal business j to Mediterranean, South America and ports - on the West coast of Africa. Freight rates out of Hampton Roads on coal to South American ports have i lately been quoted as high as several 'dollars per ton on coal valued at $2.70 per ton. making shipments absolutely prohibitive and destroying business." ENGLAND MUCH, INTERESTED IN CONDUCT OF L.USITANIA : Use of American Flag May Brine; About an Early Understanding. London, Feb. 7. The use of the American flag by the British steamer Lusitania, of the Cunard Line, in its voyage across the Irish sea, has arous ed great interest, and although it did not mention this instance specifically, the British foreign office issued a state ment dealing in a general way with sucn usage. It argues that the only ef fect in the case of a merchantman fly ing a neutral flag would be . to compel a belligerent ship to investigate the vessel's nationality and the character of her cargo before capturing her. The statement points out also that by the merchant; shipping act of 1894 foreign vessels are permitted to use British colors for the purpose of escap ing capture". ' From stories told by passengers on the Lusitania it would appear that the captain of- the liner received his in structions to hoist the stars and stripes from the British admiralty. Already he has been warned of the presence of the German submarines. A Birmingham magistrate, Joseph Sturge, who was returning from a trip to the United States aboard the Lusi tania, said that the voyage had been uneventful until the steamer arrived off the Irish coast, on Friday morning. "Then on an intimation from the ad miralty," said he, "we hoisted the Am erican flag, which" caused some sensa tion among the passengers. We pro ceeied under the American colors, but teh Eiglish flag was rehoisted before we reached the landing stage at Liver pool." Officials here hold strongly to the view that in the use of neutral flag British ships, bearing neutral passen gers, particularly Americans, are fully justified in taking whatever measures are deemed necessary to save life. London, Feb. 7. The Swedish steam er William, from Baltimore January 15th for Trelleborg and Kalmar, Swe den, ook refuge in Queenston harbor today from the storm. Several of he crew were injured, her boats were smashed and the bridge damaged. X JAPAN THREATENS MILITARY; JL ACTION TOWARD CHINA TO .1. FORCE DEMAND Peking, China, Feb. 7. Japan has threatened military action to force China to meet her recent demands, according to a ' cable message from the Chinese min ister at Tokio. Officials say, however, the communication should not be taken too seriously. LARGER FOR WH.MIKGTOJST, K. Interest of pease 7 Foreign Diplomats at Wash ington Discuss Possibility. COL- HOUSE TO EUROPE Visit of President's Friend to European Capitals Canses Speculation as to Reason No Specific , Plans Afoot Washington, Feb, 7. Plans which President Wilson may have, looking to the eventual termination of the Eu ropean war, were the subject of much speculation among foreign diplomats today as a result of the arrival in Lon don of Colonel E. M. House, the Presi dent's intimate friend, on a tour of the European capitals. At the White House it was stated that Mr. House was not authorized to carry peace negotiations while in Eu rope, though the President naturally expected to learn much of interest about the diplomatic situation there when the Colonel returned in the spring. , It was said authoritatively that Mr. House had planned to go to Europe' of his tfWn initiative but that the President asked him to do what he could toward co-ordinating various re lief measures undertaken by Ameri cans abroad. Only incidentally does Colonel House's mission bear on the possibility of making peace, as the President, it is known does not intend to renew his original tender of good offices for ' mediation until there is an acceptance, or a strong indication to that ef fect by one or more of the belliger ents. Look For Developments Many diplomats here, however, were inclined to believe that the trip of Colonel House might be' instrumen tal eventually in developing unofficial . iy an understanding of conditions un der which the belligerents would make peace. Colonel House is on intimate terms with some of the principal for eign secretaries of Europe and most of the American ambassadors in Eu rope were his close, associates before Colonel House bears a letter saying he is the personal and -unofficial rep resentative of President Wilson so that Americans in -charge of various branches of relief work will not hesi tate to discuss their plans and co operate with him freely. , While engaged in this work Colonel House is expeeted to. gather much in formation that may be of value to (Continued on Page Two.) , VILLA DRAWS NEARER CAPITAL OF MEXICO i t r i xr wages Jrcsperaie war un var- ranza Forces. Representative of Cien. Villa at Wash ington Receives Message From His Chief Advance on Tampico Steady. Washington, Feb. 7. Advices to the Villa agency here tonight said General Villa was at Irapuato, 100 miles north of Mexico City, directing an extensive campaign which has for its object the capture of Tampico and domination of the northern half of Mexico. That Gen. Villa would invite the di plomatic corps to come into territory he controls as a counter move to the invitation issued by Carranza f or the diplomats to go to Vera Cruz was in dicated in advices reaching here. At the the State Department no further news of the differences between Carran za and the diplomatic corps was re ceived. The Carranza agency issued at state ment giving the list of original dele gates to .the Aguas Calientes conven tion, who either were dead, in hiding or missing, anu those who were support ing the various chiefs. The Carranza list claims that out of the total number j of more than 150" only fl now support; Villa, 55 are aligned with Carranza, 16 1 are with Fulalio Gutierrez 25 with Za pata, 27 are unaccounted for, the affili ations of eight are unknown, 4 were killed in battle, 4 assassinated, 2 are in prison, and 1 General Jesus Davila Sanches is neutral, though his where abouts is not given. Enrique Llorente, the Villa represen tative, tonight explained that Villa's military campaign had advanced along the. three principal railroads In Central Mexico to within a few miles of the bor der towns of Piedras Negras, . Nuevo Laredo and Matamoras. 'At each place Villa troops are threatening the Car ranza garrison, he said. Llofrente added that General Angeles had complete control or Monclova, Mon terey, Catillo and San Luis Potosi, and that the advance on Tampico was pro gressing rapidly. Madrid; Madrid, Feb. 7. The Spanish Chamber of Commerce has protested against the manner In which Spanish merchandise is handled at some .United States ports, - especially, those of Porto Rico. Modification is asked or at least the same 'treatment United States mer chandise in accorded in. Spanish ports. i U piOliNESTG, OF CITY FINANCES Addresses Open Letter to Councilman Chadwick ... , . AS TO PROPOSED BONDS Legislator Makes Inquiry as to Ac counts and Finance of City to Govern His Attitude Cou- cerninsr Pending: Bills (Special Star Correspondence) Raleigh JT. C, Feb7. Representative Stacy has sent to I. N. Chadwick Jr., councilman of accounts and finances, of the city council of j; Wilmington an open letter of inquiry as to a number of matters pertaining to the finances of the city, the information asked be ing wanted by Mr. ,ftacy in determin ing his attitude towird a number of bills either introduced in the Legis lature already or tat will be in troduced soon. The" letter follows: Raleigh, N. C. February 6. 1915. Mr. D. N. Chadwick,; Jr., ' Councilman of Accoftnts and Finance, Wilmington.XK C. My dear Sir: . 1 wish to obtain Jsome information in regard to the City's finances, . in order that I may intelligently act upon the bills already introduced, and those which have been suggested, relating to bond issue. s ,. . In the first place, we have already passed an act, at thiar'-session, validat ing the City's notes.in the sum of $40,000,00, which Avere- issued for Mar ket street improvement; and, in the same act, authority was given the City to levy a tax with which to pay these notes. It is my information that these notes are non-interest v bearing and that they fall due four years after the date of their making.' sucn are their tenor by reason of the condi tions under which they were issued. I should like to know if this informa tion be correct. .. Another BiltVPending - Another.. ifeUlJbas orady. .ftee.; duced in the Senate author iain City to issue bonds in the sum of $100, 000 to take up its present floating indebtedness. . In this bill the Market street notes are also included. Why authorize the City to levy a tax to pay these notes and then authorize a bond issue to take them up? The notes and the bonds both carry a tax. Even if the notes bear six percent interest (contrary to my information) and the bonds only Ave per cent interest, what assurance do you have that the hold ers of the notes will surrender them and take the bonds? Of course, I un derstand if these Market street notes do not bear interest you would not exchange five per cent bonds for them. Still another bill has been introduced by Senator Cooper authorizing the City to borrow $100,000.00 and lend the same to citizens for the building of sidewalks and installing water and sewerage connections. Said loans to citizens are to be repaid as may be re quired by the City Council, but the act does not require the Council to use the funds thus repaid by the Citizens in discharging the City's debt incurred by borrowing the money which 'it pro poses to lend to the citizens. The City's debt is to be cared for by a tax. And I apprehend that the next Legis lature will-be called upon" 'to bond this very indebtedness. Do you not think this conclusion altogether probable? Furthermore, as a business principle, do ; you think it wise for the Legis lature to authorise elective officers to lend public funds to their constitu ents? I also notice from the papers that the City Council desires authority to issue bonds in the sum of $40,000,00 to take up certain other bonds falling due in 1918 and 1919. I wish to in (Continued on Page Two.) GENTLEMEN BANDITS ROB LIMITED TRAIN Men Only Relieved of Their Worldly Possessions. Passengers on Florida East Coast Pas senger Invited to Pass Over All Watches, Money, Etc. La dles Keep Theirs. West Palm Beach, yia., Feb. 7. The Palm Beach Limited train of the Flor ida East Coast Railroad, bound from Jacksonville to Miami, was boarded by four masked men at Stuart, Fla., early tonight, and .-the male passengers on the observation platform robbed of their money and jewelry. The amount obtained has not been learned, but it is not. believed to have been large. No attempt was made to molest the women. They were forced, however, at the point of revolvers, to enter the car, where several of them fainted. Af ter completing their search of the men, the . robbers made . their way through the ' observation car, but found that a brakeman, who had caught sight of them, had locked the door. Revolvers were then. leveled at him and he was ordered to pull the bell rope to stop the train. When it slowed down the . four men jumped to- the ground and escaped. Posses are . now searching for them. , STACY WOULD KNOW 1 FEBEUAEY 8, 1915 HIT ONE OATS MORE FOR SENATE Call for Extra Session of Con gress is Probable. SHIPPING BILL FIGHT If Fight 'Continued, Appropriation Meas ures Must be Handled in Extra Session If Appropriations . Passed Fight Lost. Washington, Feb. 7. With 21 work ing days ahead of the Sixty-Third Con gress the fate of the government ship purchase bill still remains uncertain. Whether it will be held before the Sen ate to the exclusion of appropriation bills until passed or until the gavel ends the session March 4V must be de termined by the President and adminis tration leaders. Some definite under standing on this point probably will be reached in a few days. The President is expected to discuss the situation to morrow with senators who have stood valiantly 1?or the bill through the last week of party rebellion. Suggestions that Republican senators eventually might yield their opposition in order to take up appropriation bills and let the measure come to a vote, are denied by minority leaders. They in sist the bill cannot get to a vote. Dem ocratic senators championing the bill admit the situation is desperate. They realize their insistence on keeping the bill before the Senate will cause fail ure of the great appropriation bills. This would make an extra session in evitable. If it is determined that an effort should be made to pass the appropria tion bills to avoid an extra session, the ship purchase bill, in the opinion of some of its staunchest friends, must be withdrawn. Even then there tmay not be time to pass all the great supply measures. There are fights ahead on the naval and military bills, and the ri sers and harbors bill is certain to pro- iiU,v.to-r., ..... iic immrgiait situation. What ever is decided as the program for the rest of the session, the immedi ate situation is the pending motion of Senator Clarke, of Arkansas, to recom mit the ship bill without instructions. Democratic leaders probably will let the motion reach a vote tomorrow. A roll call is expected to show 48 votes in its favor to 47 against it, with Senator t Continued on Page TSi'-'nt.) IS GREATLY IMPROVED Textile Trade Expert Kinston Thinks So At F. Taylor, General Manager of Large Plant at Kinston Sees Better Times Well Known Through out South as Authority. (Special Star Correspondence.) Kinston, N. C, Feb. 7. J. F. Taylor, general manager of a big plant here and well known throughout the East and South as a former president fof the Southern Soft Yarn Spinners' Associa tion, declared "conditions in the tex tile lines are gradually bettering," in an interview given your correspond ent Saturday. "There has been no boom in the markets yet for two reasons, notwithstanding we have cheaper cot ton. First, there were large' stocks of goods in the hands of the retailers and jobbers as well as with commission houses and manufacturers of both raw material and finished good- on a cotton-cost basis of 12 1-2 to 14 1-2 cents per pound, and the readjustment of prices from this cost down to the pres ent cost has made trading very hard on any sort of satisfactory basis .. "Secondly, we have had an immense amount of foreign goods coming in, for which orders had been placed some time prior to the war, under the lower tariff rates. Most of these goods had been made up before the war was de clared and others were completed af ter that time, so that our imports for September, October and November far exceeded those of the same months in 1913. In December they were about equal and in January quite a falling off was noticed. Importers' orders, it is now thought, have been pretty well filled, so we expect a diminishing .for eign competition from now on. "At the same time, our -American manufacturers are beginning to get some orders for goods for export, prin cipally for military us'es, and this will, probably be increased by orders from South American and other countries which have formerly depended upon England, France and Germany for nearly all of their textile goods. "So, now having more nearly. a mo nopoly of our home "trade and a.brig-ht prospect for a good share of expert business, together with the general im provement in business of almost all kinds throughout the country, we con fidently expect a great boom in textile manufacturing during the year." Mr. Taylor, like most other men at the head of big business concerns, ex pects South America to contribute greatly to American commerce if the war - should continue.. HeMsl regarded as"" one v of ' the best-posted icotton mill men in the South-." ,, SOUTHERN SHON RATIFY AGREEMENT AS TO COAST LINE President Kenly and Governor Craig Write AS TO UNDERSTANDING Charge of Bad Faith as to Removal of Case Disproved Committee Com mends Sense of Fairness in Meeting: the Situation. The full text of the correspondence under which the conference was re cently held in Raleigh at which a full agreement as between the Atlantic Coast Line and the State in the matter of removal of cases to the Federal Court, detailed in the Raleigh dispatch es to this paper, was made public in this city yesterday by Assistant General Counsel George B. Elliott, of the rail- jToad company, together with the letter of Governor Craig to President Kenly, of the company, and the reply of Mr. Kenly to the Governor, ratifying the terms of the agreement. The correspondence is - explanatory within itself and opens with the letter of Mr. Elliott to the Go.vernor, propos ing to ha've the conference with a view to a full and fair settlement of the con troversy; the details of the conference as made by the Governor to Mr. Elliott, giving the findings of the committee, and the letters or Mr. Elliott and Mr. Kenly, accepting the terms of the agree ment, all of which become now a mat ter of- record. The letters follow in their order: Wilmington, N. C, February 6th, 1915. (At Raleigh, N. C.) Honorable Locke Craig, Governor of North Carolina, Raleigh, N. C: My dear Sir In order that the sug gestion made by me on behalf of this company may be definitely and clearly submitted to you and the gentlemen who have kindly consented to meet with yu in order to determine accurately the facts in connection with the pass- fa f -the ignslftliig AtfFff3tV trade which- the" WilmingtoK& Weiaon! wSs consolidated with , the other roads now forming the Atlantic Coast Line Rail road Company, I beg. leave to reduce to writing, in this letter, the statement I have heretofore made to yau, and indi vidually to certain of the other gentle men mentioned. I have asked, and you have very kind ly consented to aid .me in securing a meeting of the gentlemen who have ac tual personal knowledge of the facts connected with the introduction and passage of this bill, the object being to ask them to consider the situation as they recall it, and to determine, after mutual discussion: (1) Wether or not a promise was made by any official of the Wilmington & Weldon or the Atlan tic Coast Line that the consolidated company would not seek to remove a case to the Federal Court upon the ground of diverse citizenship thereafter if the bill introduced by Mr. Rountree was enacted into a law; (2), Whether such a promise was made by anyone p!r huvinir even aDDarent authority. j on behalf of the Wilmington & Weldon lor the Atlantic Coast Line, and (3) Whether the Legislature, in passing this bill, actually relied upon the faith of any such promise, either made or which was understood by the Legisla ture, to have been made. I have said to you, and to the other gentlemen, that the Atlantic Coast Line officials have no knowledge of any such promise ever having been made by any person officially connect ed with the Atlantic Coast Line, or by anyone else, but that if it appeared that such a promise was made, even without the knowledge of the officials, by one having even apparent authority, and that the;action of the Legislature of 1899, in. passing the law, was upon the faith of the understanding that such a promise had been made, that the At lantic Coast Line Railroad Company is now prepared, and will agree to re nounce any right that it has under the law to remove cases from the State to the Federal Court in this State upon the groundof diverse citizenschip, and will immediately agree to a dismissal or remand of all cases now pending in the Federal Court, in which the cause of action arose within this State, and which was removed to the Federal Court upon the ground of diverse citi zenship, ' I am authorized to agree further for the Atlantic Coast Line Railroad Com pany, in the event you find that such a promise was made, or understood to have been made, that it will not here after seek removal of cases, in which the cause of action arose in this State, to the Federal Court, upon the ground of diverse citizenship, and to ' agree generally that so far as the right of remefval is concerned, the Atlantic Coast Line Railroad Company will assume the same position it would occupy if the property were still operated by the Wil mington & Weldon Railroad Company. This, as we view it, would give full force and effect to the possible pur pose and intention of the Legislature in passing the Act of 1899, construing it most liberally in favor of the State. It would not, of course, preclude us from seeking the jurisdiction of the Federal Court in those cases in which under the Federal statutes may be tried in the Federal Court, eveft by a corpo ration which is a citizen of this State. It is the sincere desire of this com pany to ascertain actually the facts in . connection with the passage of this bill, and thereafter to carry out to the fullest extent any obligation, either le gal or moral, which properly flows from those" facts, and I desire to express here my appreciation of the courtesy shown us by you gentlemen who have consent ed to meet and discuss this situation, In . (Continued on Page Eight.) .. v. v ' - . ' - ' WHOXiE, NUMBER 13,905. AVOID VIOLENCE TO NEUTRAL VESSELS IS GERMAN NAVAL ORDER That Phrase in Official Memo randum Reassures Wash ington Authorities. PROBABLY NO PROTEST But State Department Will Make Inquiries as to ' Certain Points. Early Understanding is Desire . . , i. of America. Washing ton, Feb. 7. Although th text of Germany's official memorandum explaining the admiralty's proclama tion of a submarine campaign against enemy merchant ships has been de layed in transmission and did not reach the State Department today from Am bassador Gerard, publication in the press of the text of the document pro duced a profound impression in tha national capital. As the memorandum revealed that German naval commanders had been ordered to-"avoid violence 'to neutral ships-, it was regarded as much more reassuring than the brief proclama tion, though there was some uneasi ness over the suggestion in the mem orandum that efforts to torpedo enemy ships might unintentlally strike neu tral vessels. President Wilson and his cabinet' have come to ho decision as to wheth er the United States will enter a pro test, but it is believed some inquiry may be made as to what steps are plan ned to take off passengers and crews from enemy merchant ships us well sis neutral vessels. The declaration of Len;dtt provides- thattryUvc peveons. aboard an enen merchant" slups must be saved before the vessel is destroyed. -Want Assurances Now. If assurances are given that mer chant ships will not be summarily de stroyed without giving an opportunity for persons aboard to be saved, it is regarded as certain that the American government, pbserving strict neutral ity, will not protest against the. Ger man proclamation. ' - It was apparent among high officials that the hoisting of the American flag on the British steamer Lusitania im-t mediately after the charge, had been made in the German admiralty's proc lamation that neutral flags had been ordered used by Great Britain was more likely to call forth diplomatic discussion than the proclamation it self. This incident may call forth an inquiry tomorrow if American Am bassador Page does not report on it by then. The presence of many close friends and relatives of high officials of the American government on board the Lu- sitania and stories that the vessel rais ed the American flag to protect neu tral passengers brought home to offi cials the question of safety for Ameri cans traveling by sea and the neces sity for an early understanding. While there is no law of .the United States penalizing any vessel that en ters or leaves, American ports for uslpg1 the American flag without authorize tion and no explicit rule on the sub ject ever has been incorporated in in ternational law, the embarrassments which might result from such a prac tice caused much speculation among; diplomats. ; Warning Is Studied. The German warning that neutrals1 should not voyage in enemy merchant ships, probably will be heeded, to some extent, it was thought but the effect on those Americans who are in Eu rope now and plan to return home by the Big English and French passen gers liners was another phase of tha situation that was studied. In some executive quarters it wax believed that the German naval com manders had been given much more strict instructions about caring for the safety of civilians of both enemy and. neutral countries on board merchant ships than had been made public. The view suggested was that Ger many's action was aimed chiefly against the cargoes of contraband and the troop ships crossing the English chan nel. In this connection it was that official information has been received by the American government that for the last month England had transported an av erage of 30,000 men each week across the channel. Official estimates which have reached the American government place the number of British troops in the field now as close to 500,000 with the expectation that Kitchener's army of 1,000,000 was likely to be in France by spring. Germany's charge that England rad not respected neutral property aboard enemy ships and that neutral govern ments have protested vainly in this respect was not generally known here until the German memorandum was made " public. PART FOR GERM AX NAVY Will Bide Her Timeand Fight In Her Own Way Respect of England Berlin, Feb, 7. (via London) Grand Atlmica.1 Von-Koester, president of the German Navy League, in an address at Kiel University today, discused condi tions governing the part to-be played by the German navy in the war. He declared the relative strength of the German fleet compared with the Anglo-French-Russian fleet is perhaps one to four.v" The British, he : added; perhaps estimated German lust for battle so highly that they had said to themselves "Some day they will come. and we shall (Cositinatd on Page KigAt.) ' '' 3;.-' .1 ' . - 'v

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